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    Cultural mistakes and cultural challenges faced by MNE's

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    Few jobs require the kind of cultural sensitivity as the job of the international trainer. Large numbers of American business people travel the world training business people in everything from management techniques and computers, to human resource management and ethics. But what works in the domestic training session may or may not work in the global training world. Indeed, what may be wonderful in one context may be downright offensive in another. Sensitivity to cultural differences is very important.

    CASE
    ? Wade, Jared (2004),"The Pitfalls of Cross-Cultural Business", Risk Management, 51(3), 38-42. Retrieved November 18, 2011, from ABI/INFORM Global. (Document ID: 574079721).
    ? Gibson, R. (2006), Small Business (A Special Report); Foreign Flavors: When going abroad, you should think of franchising as a cookie-cutter business; Unless, of course, you want to succeed. Wall Street Journal September 25, 2006, Page R. 8
    As an example,
    ? Carlo, Andrew M. (2006). " Overseas Adjustment", Home Channel News. New York: October 2006, Volume 32, Issue 13, Pages 26-28
    Things to include
    ? First, please identify some "cultural mistakes" from the first article listed above ("The pitfalls of cross-cultural business").
    ? Second, please select a company from the second article ("Small Business- A special report") and then analyze that company's "cultural" approaches.
    ? Discuss how the company you selected (e.g. focus on an international company of your choice from the second article) approaches foreign markets from the perspective of culture, and comment on how they should manage "cultural mistakes" that involve "cultural differences".

    Expectations
    ? Help to Write a report that includes the following.
    ? Discuss the problem of cultural mistakes and cultural challenges faced by MNE's in various countries.
    ? Use one of the MNE's discussed materials to illustrate how a firm faces cultural challenge(s).
    ? Draw conclusions and list supporting references and cite sources.

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    Solution Preview

    Cultural Mistakes and Cultural Challenges

    Cultural mistakes in "The Pitfalls of Cross Cultural Business":

    Wade (2004) provides that one of the mistakes people do while in a different culture is failure to familiarize oneself with the cultural practices in the area. There are thousands of minor differences in culture and this can result in varying consequences if a party is not familiar with cultural customs. Failure to learn the cultural practices can lead to confusion and problems due to improper body language and gestures. Wade (2004) provides examples of cultural mistakes that are interpreted differently across the globe. The article provides that gesturing the A-Okay sign in Brazil is considered insulting as it equivalent to giving the middle finger in America. Another gesture that is insulting in Britain is holding up the peace sign while palm is facing inward.

    Another mistake made in cross cultural activities is misinterpreting what objects and actions stand for. An example is Bulgaria where nodding "no" means that the individual is listening to you and ...

    Solution Summary

    The cultural mistakes and cultural challenges faced by MNEs are determined.

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